Their bullish view on stocks is informed by expectations of "a bottoming in China growth, reduced tail risk from Europe, and a multi-stage fix to the Fiscal Cliff."

The team, led by Savita Subramanian, identified the top 50 cyclical recovery ideas. These stocks are very sensitive to US GDP growth and all have high betas, which make them more volatile than the S&P 500.

We ranked the stocks based on correlation to GDP.

1/

Peabody Energy Corp.

Kevin Frayer/AP Photo

Ticker: BTU

Sector: Energy

Correlation: 19.5%

Beta: 4.23

YTD Return: -24.40%

Peabody mines, markets, sells, and distributes coal.

Source: Bank of America Merrill Lynch

2/

Jabil Circuit Inc.

Ticker: JBL

Sector: Information Technology

Correlation: 19.7%

Beta: 4.88

YTD Return: -3.81%

Jabil provides electronic engineering and manufacturing services.

Source: Bank of America Merrill Lynch

3/

Dell, Inc.

AP

Ticker: DELL

Sector: Information Technology

Correlation: 20.4%

Beta: 2.29

YTD Return: -33.63%

Dell, best known for its line of computers, provides technology solutions, services and support.